Use the Information to Answer the Following Question(s)

question 12

Multiple Choice

Use the information to answer the following question(s) .
Rogue River Exporters USA has $100,000 of before tax foreign income. The host country has a corporate income tax rate of 25% and the U.S. has a corporate income tax rate of 35%.
-Refer to Instruction 20.1. If the U.S. treated the taxes paid on income earned in the host country as a tax-credit, then Rogue River's total U.S. corporate tax on the foreign earnings would be ________.

• A)$51,250
• B)$35,000
• C)$26,250
• D)$10,000

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Definitions:

Income Distribution

The way in which total income is shared among individuals or groups of people in an economy.

Economic Pie

A metaphorical representation of the total amount of wealth or resources available within an economy, with its distribution among individuals or groups being a central economic concern.

Productive Resources

Inputs used in the production of goods and services, including land, labor, capital, and entrepreneurship.